Correlation Between Chengtun Mining and Topsec Technologies
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By analyzing existing cross correlation between Chengtun Mining Group and Topsec Technologies Group, you can compare the effects of market volatilities on Chengtun Mining and Topsec Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chengtun Mining with a short position of Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Topsec Technologies.
Diversification Opportunities for Chengtun Mining and Topsec Technologies
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Topsec is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies and Chengtun Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chengtun Mining Group are associated (or correlated) with Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Topsec Technologies go up and down completely randomly.
Pair Corralation between Chengtun Mining and Topsec Technologies
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.03 times less return on investment than Topsec Technologies. In addition to that, Chengtun Mining is 1.01 times more volatile than Topsec Technologies Group. It trades about 0.11 of its total potential returns per unit of risk. Topsec Technologies Group is currently generating about 0.12 per unit of volatility. If you would invest 508.00 in Topsec Technologies Group on September 13, 2024 and sell it today you would earn a total of 247.00 from holding Topsec Technologies Group or generate 48.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Topsec Technologies Group
Performance |
| Timeline |
| Chengtun Mining Group |
| Topsec Technologies |
Chengtun Mining and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Topsec Technologies
The main advantage of trading using opposite Chengtun Mining and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Topsec Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Topsec Technologies will offset losses from the drop in Topsec Technologies' long position.| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
| Topsec Technologies vs. Western Metal Materials | Topsec Technologies vs. Shandong Hongchuang Aluminum | Topsec Technologies vs. Shandong Sinoglory Health | Topsec Technologies vs. Chongqing Shunbo Aluminum |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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